MTWARA PPP FOR PUBLIC PRIVATE INFRASTRUCTURE APPRAISAL	TANZANIA

> SECTOR(S) : Power

> SERVICE(S) : Institutional Reform, Planning, Economics and Modelling

The Mtwara Development Corridor is a regional development initiative involving areas of four co-sponsoring countries (Malawi, Mozambique, Tanzania and Zambia), bounded by Lake Nyasa in the west and featuring the Port of Mtwara on the Indian Ocean.

Supported by a PPIAF grant and contributions from the Development Finance Resource Centre (DFRC) of the Southern Africa Development Community (SADC), the World Bank retained CPCS to assist the National Development Corporation (NDC) of Tanzania to appraise and package potential public private infrastructure (PPI) projects in the Corridor, and to build capacity through a training program (including participants from Malawi and Mozambique as well as from Tanzania) and recommendations for a PPI facilitation unit in the NDC.

Three pilot projects were chosen for analysis. These included proposals for an integrated coal to electricity project based on coal deposits at Mchuchuma, a heavy capacity ferry between Nkhata Bay in Malawi and Mbamba Bay in Tanzania, and output and performance-based contracting for maintenance of sections of the Mtwara-Mbamba Bay road.

Together with the training participants, CPCS reviewed potential projects and assessed their suitability for PPI; constructed and reviewed economic and financial models; undertook due diligence of previous studies; created qualitative and quantitative risk assessments; and prepared an extensive set of model project agreements and procurement documents for the pilot projects.

CPCS outlined strategic options and practical steps to be taken to bring the projects to the stage at which private investors could effectively become involved, and compiled a handbook of procedures for developing and managing PPI projects.

CPCS recommended and obtained agreement on a business mandate for NDC’s PPI unit, both internally and externally; a financing model; an organization structure; and a staffing strategy.